AI-Driven Transformation Fuels Fii’s Exceptional First-Half 2025 Performance
The first half of 2025 has proven to be a transformative period for the global technology sector, with the accelerating adoption of artificial intelligence (AI) reshaping business strategies, market demand, and industry dynamics. Riding this powerful wave of change, Foxconn Industrial Internet Co., Ltd. (Fii) experienced robust growth across its core business segments, achieving significant gains in both order volumes and order values.
A key driver of this performance was the surge in AI infrastructure investment, particularly within cloud computing. Leading global cloud service providers have been ramping up their capital expenditure to build out AI-specific capabilities, ensuring they can meet the rising computational demands of large-scale AI model training and deployment. This ongoing investment cycle has provided fertile ground for Fii’s server business to expand rapidly.
During the second quarter of 2025, Fii reported an impressive year-on-year increase of more than 50% in total server revenue. Even more striking was the performance of its cloud service provider-focused server line, which delivered revenue growth exceeding 150% compared to the same period in 2024. AI server sales also recorded a remarkable jump of over 60%. Central to this momentum was the successful mass production of the highly anticipated GB200 series. With manufacturing yields improving steadily and shipment volumes on the rise, this product line has become a cornerstone of Fii’s competitive advantage. The company is already working closely with key clients on the design and research of next-generation products, ensuring it maintains leadership in supply chain breadth and delivery capabilities.
The AI revolution has also been reshaping the architecture of global data centers. In the first half of 2025, data center networks continued their evolution toward higher bandwidth and lower latency—a necessary response to the immense computing power required for AI model training and inference. This shift has particularly benefited the high-speed switch market, as AI accelerator clusters demand ever-faster interconnectivity. For Fii, this trend translated into a standout performance in its switch business: revenue from 800G switches nearly tripled compared to the total revenue generated from this product segment in the entire year of 2024.
Beyond data center growth, the AI boom has rippled into the consumer electronics sector, sparking a fresh wave of premium product upgrades. The emergence of AI-powered smartphones has been a notable catalyst, driving structural recovery in terminal demand after a period of stagnation. Fii’s precision mechanics division reaped the rewards of this trend, with shipments increasing by 17% year-on-year. Strong sales of specific customer models contributed to this growth, further solidifying the company’s leadership position in the market.
Fii’s stellar business performance was complemented by its ongoing commitment to shareholder value creation. In a move that underscored its financial strength, the company declared a cash dividend of RMB 6.4 for every 10 shares, amounting to approximately US$1.77 billion—a record high for the company. Remarkably, Fii has distributed more than RMB 10 billion annually in dividends for three consecutive years, bringing cumulative distributions since its public listing to an impressive US$7.87 billion.
Recognition of Fii’s achievements extended beyond financial results. The company earned a place in the S&P Global Sustainability Yearbook (China Edition) 2025, receiving the prestigious “Industry Mover of the Year” award. This accolade reflects not only Fii’s operational success but also its sustained commitment to environmental stewardship, social responsibility, and corporate governance.
To further strengthen transparency and stakeholder engagement, Fii published several key reports during the first half of the year, including its latest Sustainability Report and a Taskforce on Nature-related Financial Disclosures (TNFD) Report. These publications reinforce the company’s long-term vision of becoming a world-class enterprise that balances technological innovation with sustainable growth.
As the global AI wave continues to gather momentum, Fii appears well-positioned to capture emerging opportunities. Its deep integration within AI infrastructure supply chains, coupled with its ability to anticipate market trends and deliver high-performance solutions, sets the stage for sustained growth in the months and years ahead. With a balanced focus on innovation, operational excellence, and responsible corporate citizenship, Fii is not only benefiting from the current AI boom—it is actively shaping the future of the technology ecosystem.
